Abuhamdeh v. Club One, LLC

Filing 24

ORDER DENYING MOTION FOR LEAVE TO FILE A FIRST AMENDED COMPLAINT. SCHEDULING : Default judgment motion due by 7/17/2014 at noon. Discovery due by 11/3/2014. Collective action and class certification motion due by 10/1/2014.. Signed by Judge Alsup on July 10, 2014. (whalc1, COURT STAFF) (Filed on 7/10/2014)

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IN THE UNITED STATES DISTRICT COURT

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FOR THE NORTHERN DISTRICT OF CALIFORNIA

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United States District Court
For the Northern District of California

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RASHAN ABUHAMDEH, individually
and on behalf of all others similarly
situated,

No. C 14-00415 WHA

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Plaintiff,
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v.
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CLUB ONE, LLC,

ORDER DENYING MOTION FOR
LEAVE TO FILE A FIRST AMENDED
COMPLAINT

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Defendant.
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/

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In January 2014, plaintiff filed a putative collective and class action complaint against
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defendant Club One, LLC, alleging eight wage-and-hour claims. (Club One, Inc. was not a
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named defendant.) In April 2014, default was entered against Club One, LLC (Dkt. No. 14).
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In May 2014, plaintiff appeared for a case management conference. The deadline to file
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a first amended complaint was set for May 8. No first amended complaint was timely filed
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(Dkt. No. 17). Club One, Inc. then filed a voluntary petition under Chapter 7. In re Club One,
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Inc., No. 14-bk-30802 (N.D. Cal. Bankr. May 27, 2014) (Judge Hannah Blumenstiel). Plaintiff’s
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counsel here subsequently urged a stay in light of the bankruptcy petition (Dkt. No. 20).
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In July 2014, neither side appeared for a noticed case management conference
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(Dkt. No. 21). Following an order to show cause, plaintiff’s counsel reversed course and stated
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that the matter should proceed without a stay because Club One, LLC is not a debtor in
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bankruptcy. According to plaintiff’s counsel (Roy Decl. ¶ 4):

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I have been informed that [defendant] Club One, LLC, is a wholly
owned subsidiary of [third party] Club One, Inc., and that it has no
assets of its own. Specifically, I was informed that the entirety of
the consideration for the sale of the Club One assets to [third party]
Active Sports Clubs, LLC, was conveyed to Club One, Inc., not to
Club One, LLC . . . . My firm has also been in communication with
counsel in another putative and earlier-filed class action against
Club One in hopes of sharing information in order to achieve some
recovery for former employees.

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No information was provided about the “earlier-filed class action.” Plaintiff, however, moved

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for leave to file a first amended complaint (Dkt. No. 22). The proposed first amended complaint

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(1) added a second plaintiff, Dirul-Islam Muhammad, (2) added a second defendant, Active

United States District Court
For the Northern District of California

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Sports Clubs, LLC, and (3) added a ninth claim under the California Private Attorney General

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Act (“PAGA”). Plaintiff’s motion, however, did not candidly disclose that it’s proposed first

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amended complaint added a PAGA claim. (No redline was provided.) Plaintiff only disclosed

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adding a new plaintiff and defendant.

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This order finds that no good cause has been shown for plaintiff’s delay in filing the

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proposed first amended complaint two months after the deadline. It is now too late to add new

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parties and new claims to an action begun in January 2014. The tardy motion for leave to file a

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first amended complaint is DENIED WITHOUT PREJUDICE, to Dirul-Islam Muhammad filing a

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new lawsuit. In terms of this lawsuit, the following schedule is hereby ordered:

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1.

Any motion for default judgment must be filed by JULY 17, 2014 AT NOON, to be

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noticed on a 35-day track. The motion should address why an automatic stay should not apply.

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A copy of the motion must be mailed to the defendant.

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2.

By JULY 17, 2014 AT NOON, plaintiff shall file a brief statement identifying the

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case name, case number, court, parties, counsel of record, judge, and procedural history of the

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“earlier-filed class action.” Please state whether any classes have been certified (and which

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classes). A copy of the complaint should be appended to the submission.

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3.

The motion for FLSA collective action and FRCP 23 class certification must be

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filed by OCTOBER 1, 2014, to be heard on a 45-day track. The motion should address why a

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default class action should be allowed to go forward.

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4.

The non-expert discovery cut-off date shall be NOVEMBER 3, 2014.

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5.

Plaintiff shall promptly mail a copy of this order to defendant as a courtesy.

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IT IS SO ORDERED.

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Dated: July 10, 2014.

WILLIAM ALSUP
UNITED STATES DISTRICT JUDGE

United States District Court
For the Northern District of California

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